paye

Umbrella PAYE for lower-paid workers

By using this service, you can reduce the level of administration involved in-house for these workers while at the same time reducing the cost and risk of having them on direct PAYE.

How does it work?

The process is simple. You can fix your labour costs from just £9.30 per hour and let us do the rest.

We employ the workers and take on all of the administrative costs, such as registration, payroll, payslip posting, and bank charges and RTI.

As your umbrella company, we will also take on the risks associated with being the employer, including SSP, SMP, and tribunal claims. This leaves you totally free to focus on filling vacancies, and not spending time on HR issues or pay queries.

We will pay the workers national minimum wage (NMW) plus Holiday Pay (this can be rolled up or retained, but will always be paid out in full). We will also pay ERNI to HMRC.

After we’ve done this, a small amount of money will be left which we will retain as our margin. We accept that in some cases we will make very little or no margin per worker, however we see the value of offering a complete service to our agencies and are focused on building long term relationships with our clients rather than each individual margin.

It will not be possible for the worker to be reimbursed expenses on a weekly basis due to the rate.

However, we feel that most ‘low pay’ solutions are non-compliant and in many cases seek to exploit the worker via complicated payslips. This can result in an increase in queries and distrust from the worker.

As a fully-compliant umbrella and payroll company, we will assist the worker in claiming any allowed tax relief via a completion of a P87 at the end of the Tax Year.

Find out more

With Exchequer’s simple solution, you can fix your labour costs at a low yet compliant level, and receive a high quality service with minimal pay queries.

If you’d like more information on how our umbrella PAYE payroll services could help your recruitment agency to run more smoothly, get in touch with our team.